Lars Overby, head of unit – regulation, at the European Banking Authority is joining the Covered Bond Label advisory council as the regulator’s observer representative, while the ECBC yesterday (Thursday) confirmed a planned vote on making CRD compliance an eligibility criterion for the Label.

Annik Lambert, EMF

Whether or not the Label will gain regulatory recognition has been a contentious issue for the initiative and Overby’s appointment comes as the European Covered Bond Council has been keen to demonstrate interest from the authorities.

The European Central Bank, which has on several occasions voiced its support for the Label – albeit with certain caveats – already has an observer representative on the advisory council – Benjamin Sahel, head of the ECB market operations analysis division. He will now be joined by Overby from EBA, an institution central to decisions being made about covered bonds’ role in LCRs and more generally in the new regulatory landscape.

“We very much welcome the European Banking Authority’s appointment to the Covered Bond Label advisory council as this will enrich the debate amongst covered bond stakeholders at what is a crucial moment for the Industry, with a number of key regulatory changes impacting on the future of the asset class on the horizon,” said Annik Lambert, secretary general of ECBC parent the European Mortgage Federation, speaking on behalf of the Covered Bond Label Foundation.

Meanwhile, the ECBC has confirmed that it will reach a final decision soon on whether to move from UCITS to CRD compliance as a criterion for Label eligibility, as reported on The Covered Bond Report on Wednesday. The ECBC wrote to Label Committee members yesterday and they have until 10 October to consult their constituencies and come to a position on the proposed move to CRD compliance, with the decision being based on a majority vote.